Rolls blithe on Brexit, AstraZeneca given antibiotic approval

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The FTSE 100 is predicted to bounce back from its large post-Brexit losses with a 70-point jump on Tuesday morning, according to futures bets.

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Rolls-Royce said the UK's decision to leave the EU would not have an immediate impact on day-to-day business, adding that the medium and long-term effects would depend on whatever post-Brexit deal is agreed. In a trading statement, RR said it remains committed to the UK “where we are headquartered, directly employ over 23,000 talented and committed workers and where we carry out a significant majority of our research and development”.

AstraZeneca has won European regulatory approval for Zavicefta, a combination antibiotic developed in response to the increasingly urgent need for new drugs to treat serious infections that are becoming increasingly resistant to antibiotics. Zavicefta, a combination of ceftazidime-avibactam that has previously been known as CAZ AVI, has been granted marketing authorisation by the European Commission (EC) treatment of patients with serious Gram-negative bacterial infections requiring hospitalisation, such as complicated intra-abdominal infections and hospital-acquired pneumonia.

Legal & General announced the appointment of a new group chairman on Monday, confirming former Treasury chief Sir John Kingman has taken the up the post. Its board said the appointment follows a “thorough and exhaustive process” conducted by the nominations committee, with the assistance of a leading executive search firm.

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Global stock markets lost a record $3trn in the past two trading days after a sharp sell-off in equities around the world in response to the UK referendum vote to leave the EU.
Observers said the falls on the first day after the vote on Friday were tied mainly to the short-term unwinding of trading positions related to expectations of a Remain vote ahead of the shock result, while the further selling on Monday was more about long-term revaluing of assets in anticipation of the potential fallout from the decision. - Financial Times

Britain must pursue a Norway-style agreement with the EU if it is to avoid a damaging recession, according to Morgan Stanley. The bank said negotiating membership of the European Economic Area (EEA) and retaining access to the single market would help the UK to secure a "civilised divorce" from the EU. - Telegraph

Italy is preparing a €40bn rescue of its financial system as bank shares collapse on the Milan bourse and the powerful after-shocks of Brexit shake European markets. An Italian government task force is watching events hour by hour, pledging all steps necessary to ensure the stability of the banks. “Italy will do everything necessary to reassure people,” said premier Matteo Renzi. - Telegraph

David Cameron will travel to Brussels on Tuesday to explain to Europe’s stunned leaders why Britain has voted for Brexit, as Conservative MPs pushed to speed up the process of replacing him as prime minister. Cameron will meet the European commission president, Jean-Claude Juncker, and the European council president, Donald Tusk, before a working dinner with his counterparts from the 27 other member states, at which the verdict in Thursday’s historic referendum will be the only item on the agenda. - Guardian

US close

US stocks closed firmly in the red on Monday as investors continued to worry about the impact of Britain’s decision to leave the European Union.

The Dow Jones Industrial Average ended down 1.5%, the S&P 500 fell 1.8% and the Nasdaq slumped 2.4%.

In currency markets, the dollar was enjoying further gains on Monday as the pound slid to fresh 31-year lows.

Banks suffered heavy losses; Bank of America tumbled over 12%, JPMorgan ended down 5% and Citigroup fell 4.5%.